Washington State Auditor’s Office

Citizen Hotline Report

Seattle School District No. 1

King County

Report No. 1006619

Issue Date

October 24, 2011

October 24, 2011Susan Enfield, Interim SuperintendentSeattle School District No. 1

Report on Citizen Hotline

Examination

Attached is the official report on Citizen Hotline Case No. H-11-137 at Seattle School DistrictNo. 1.This referral was submitted to us under the provisions of Chapter 43.09 of the Revised Code ofWashington. This report contains the results of our examination.Questions about this report should be directed to Audit Manager, Carol Ehlinger at (206)615-0555.Sincerely,

BRIAN SONNTAG, CGFM

WASHINGTON

STATE AUDITOR

cc: Duggan Harman, Executive Director of Finance

Washington State AuditorBrian Sonntag

Insurance Building, P.O. Box 40021

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Olympia, Washington 98504-0021

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(360) 902-0370

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TDD Relay (800) 833-6388FAX (360) 753-0646

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http://www.sao.wa.gov

Washington State

Auditor’s Office

Examination Summary

Seattle School District No. 1King County

ABOUT THE EXAMINATION

In March 2011, citizens contacted our Citizen Hotline with concerns regarding Seattle

School District’s

sale of its Martin Luther King, Jr. Elementary School property. Weanalyzed these concerns to determine whether we had the authority to examine them.While our Office does not have the authority to reverse a real estate sale as requestedby two citizens who contacted us, we do have the authority to examine circumstancessurrounding the sale of public property and to determine whether the sale complies withstate law.Our examination was not aimed at determining

if the District’s sale of the property wasthe “right” or best decision. State law and District policy

give the School Board theauthority to decide to whom it will sell its property, if the purchaser pays the minimumprice established by law. Our examination was intended to answer the followingquestions:1.

Was the District’s former Executive Director of Facilities involved in the decision

to sell the former Martin Luther King, Jr. Elementary School property to thesuccessful bidder? Concerns about a potential conflict of interest were raisedbecause the former Executive Director of Facilities is a member of the church towhich the property was sold.2. Did the former Executive Director of Facilities exert undue influence on the saleof the property and the decision-making process to favor the successful bidder?3. Did the former Executive Director of Facilities pass on inside knowledge of thesale process to anyone related to the successful bidder?4. Did the District-posted summary pages from an appraisal of the school sitereflect the operative (official) appraisal for the site, was the appraisal properlyconducted and did the proposed sale price meet the requirements in state law(RCW 28A.335.120)?5. What process did the District follow to reach the decision to sell the property tothe winning bidder, and did the District comply with state law and Districtpolicies?6. Was the funding provided by the state Department of Commerce for thispurchase a gift of public funds?During our examination, we interviewed District staff and looked at documentation.